Table 11-5
the Table Below Pertains to Napandsnack, an Economy

question 141

Multiple Choice

Table 11-5
The table below pertains to Napandsnack, an economy in which the typical consumer's basket consists of 2 pillows and 15 hotdogs. $$\begin{array} { | c | c | c | } \hline \text { Year } & \begin{array} { c } \text { Price of a } \\\text { pilldw }\end{array} & \begin{array} { c } \text { Price af a } \\\text { Hotdlog }\end{array} \\\hline 2009 & \$ 40 & \$ 3 \\\hline 2010 & \$ 45 & \$ 4 \\\hline 2011 & \$ 50 & \$ 3 \\\hline\end{array}$$
-Refer to Table 11-5. If the base year is 2009, then the consumer price index was

• A)100 in 2009, 115 in 2010, and 116 in 2011.
• B)100 in 2009, 115 in 2010, and 135 in 2011.
• C)100 in 2009, 120 in 2010, and 116 in 2011.
• D)120 in 2009, 125 in 2010, and 135 in 2011.

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Definitions:

Adverse Selection

A situation in economics where one party in a transaction has more information than the other, often leading to inefficiencies and potentially flawed market outcomes.

Insurance Companies

Businesses that offer financial protection against various risks to individuals and entities.

Co-pays

A fixed amount paid by an insured patient for receiving certain medical services, with the insurance covering the remaining costs.

Deductible

The amount paid out of pocket by the policyholder before an insurance provider pays any expenses.